If you have ever wanted to apply for a payday loan, you must have heard that this is an easy process which does not take much time before money actually enter your account. And it is indeed, provided that your application for a loan is approved. Usually, it gets approved without any additional concerns, however, every rule has its exceptions.
Things Causing Payday Loans Denials
You are the only one who actually determines whether your application succeeds or not. Typically, what you as a borrower have to do is to make sure you comply with all of the alleged requirements and have proper understanding of the conditions of a loan agreement. The latter is important to make sure all the payments are conducted on time and credit history remains in perfectly decent condition.
Among the things which may lead your payday advance application to being disapproved are the following:
- too many active payday loans: if this was a really bad month in terms of your financial management, and you have already taken out a few loans, chances are, the next one will be declined. Therefore, in many cases taking out a loan to repay another one seems to be a too weak purpose for a lender and he or she denies the application;
- no proof of employment: if you lost your job or have not prepared a valid employment proof, the denial will definitely be the ultimate answer of the lender. There is nothing more important than one’s solvency when it comes to making a lending decision;
- net income does not suffice: each lender has his or her own requirements when it comes to someone’s net income, usually it should be at least $1000. In case you do not meet this requirement, your chances are questioned;
- bankruptcy cases on your record: everyone has ups and downs and bankruptcy is just an unfortunate turn of events. Well, that is true, but not for online lenders. This life wisdom does not apply to their judgement and it is a “no” in terms of approving an application.
All in all, there are generally few reasons for your payday advance application to be denied. If you are honest with yourself and your lender, and are capable of complying with the set criteria, chances are you will effortlessly get that loan. Otherwise, you may have to work on your credit history or find a new job.